Irish airline Ryanair took a 12% slump in this morning’s trade, further intensifying concern about poor market conditions amid recessionary fears. Today, Ryanair announced a 27% drop in pre-tax profits in its third quarter net profits. Further falls are predicted for the company in its next fiscal year.
"With oil prices at $90 a barrel and fear of recession in the UK and many other European economies, the current outlook for the coming fiscal year is poor. While it is impossible to accurately forecast full year fuel prices and yields this far in advance, there is now a significant chance that profits may decline next year," Ryanair CEO Michael O'Leary cautioned.
Ryanair said that it is not hedged against oil price increases for the next fiscal year.
However, Ryanair is not the only airline to suffer from the economic downturn. Aer Lingus shares are down 3% to €2.30. Easyjet has declined 11%. However shrewd, Mr. O’Leary has plans to spend up to 200 million purchasing back shares in the company, which equates to 3% of the company share capital.
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